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Forecast for Air Traffic in the Americas

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Forecast for Air Traffic in the Americas # 0 4 2 0 1 9 Dear Industry Colleagues, Last month, IATA held its 75th Annual General Meeting (AGM) and World Air I recently met with key stakeholders in Peru and from the feedback I Transport Summit in Seoul hosted by Korean Air, bringing together 1,000 received it became clear that the air transport industry needs a much industry leaders. Thank you to those of you who were able to attend and stronger and more pro-active government partner to drive Peru's aviation make the trip to South Korea. All proceedings from the conference are now agenda forward. Most urgently, the government needs to work with the available via our dedicated AGM micro-site. The key takeaway of the AGM industry on the expansion of Jorge Chavez International Airport (LIM) to be was the successful endorsement of five resolutions to further shape the able to accommodate the projected 46 million passengers in 2038. There future of aviation in the areas of protecting the environment, slots, RFID for also needs to be a review of the cost structure (taxes and user fees) and Baggage Tracking, OneID and Disabled Passengers. All five resolutions will regulatory policies to comply with global industry standards. IATA impact the industry across the Americas and my team and I look forward to requested a meeting with the government to offer our support and global working with you in implementing these newest developments. For your best practices and we hope for the meeting to take place soon to address planning purposes, the 2020 edition of the AGM will take place in the LIM and Cusco region infrastructure concerns. Amsterdam, hosted by KLM in June. Lastly, I would like to encourage you to attend our two next regional events: Besides the AGM, my team has been advocating on behalf of the industry First the Wings of Change Conference in Chicago on September 3 and 4 with some positive outcomes in Brazil (allowing airlines to charge for bags and then the final Aviation Day of 2019 in Panama On September 10. while maintaining 100% foreign ownership rights) and Colombia (fighting a bill on consumer protection and airfare regulation). IATA's Director General As usual, please find IATA’s most recent key activities across the region & CEO Alexandre de Juniac will meet with Colombian President Duque next below and please let me know if you have any questions or require further week to further express the value aviation generates for the Colombian details. Enjoy your summer! people and its economy. The goal of the meeting will be to identify ways on how the government can work even closer together with the industry to With kind regards, ensure the right conditions are provided to prepare for the anticipated future growth of the Colombian market. A breakdown of the latest IATA 20 year forecast for key markets in the Americas region is included in the monthly chart below. Peter Cerdá, IATA’s Regional Vice President, The Americas FORECAST FOR AIR TRAFFIC IN THE AMERICAS GLOBAL GROWTH FORECAST: ADDITIONAL PAX JOURNEYS PER YEAR IN 2038 VS 2018 (MILLION) & CAGR (% PER YEAR) ARGENTINA: ANAC PLANS TO DECLARE AEP & BRC AS FACILITATED AIRPORTS—WSG LEVEL 2 In December 2018, Argentina's DGCA (ANAC) announced their intention to declare several airports in the country as airports of interest/facilitated airports and circulated a draft regulation deviating significantly from the World Slots Guidelines (WSG). IATA voiced its concern and opposition. ANAC took these comments under consideration and opened the proposed regulation to review. Upon IATA’s advice and continued guidance during several months, ANAC drafted a new regulation proposal for airport facilitation (Level 2) which more closely adheres to WSG. On June 6, ANAC presented the key elements of this new version to airlines and informed them of their plans to declare Aeroparque (AEP) and Bariloche (BRC) as airports of interest/facilitated airports. Airlines have generally provided positive comments to the development of the norm and appreciated alignment to WSG through IATA-ANAC joint efforts. Main issues to be closely monitored and that IATA continues to press: 1) ANAC has still not presented the corresponding declaration of capacity and demand analysis showing limitations that justify the need to implement facilitation procedures at AEP, 2) ANAC has declared AA2000, the Airport Operator as the facilitator for AEP during an initial period which is not ideal. For more information, please contact IATA's Senior Manager for Worldwide Slot Guidelines, Arantza Mendicoa. BRAZIL: UPDATE ON BAGGAGE ALLOWANCE & 100% FOREIGN OWNERSHIP RULE After weeks of highlighting the possible negative implications of a free baggage allowance on the Brazilian aviation sector to key players in the government, IATA welcomed the decision by President Bolsonaro to veto Provisional Decree 863/18 which was passed by the National Congress on Wednesday, May 22, 2019. This line item veto will allow airlines to continue to offer a wider choice of baggage options so that passengers can decide which additional services they would like to pay for or not. The 100% foreign ownership rule is not affected by this veto and remains in place. This decision increases the attractiveness of the Brazilian market, closer aligning the country with global best practices. We will continue to monitor the situation closely. For more details, please contact IATA’s Country Manager for Brazil, Dany Oliveira. COLOMBIA: CONSUMER PROTECTION BILL ON FARE REGULATION ARCHIVED The bill that proposed to impose stringent provisions on consumer protection and fare regulation in Colombia was archived as there was no consensus among Congressmen to debate it before the end of the current legislative period. However, the possibility remains that the bill will be brought back to life, this time with Government support who seeks to strengthen the newly acquired competences of the Superintendence of Transportation. IATA will continue to monitor the situation and advocate for a positive outcome for the airline industry during the next legislative period starting July 20. For more details, please contact IATA’s Country Manager for Colombia, Andres Uribe. COLOMBIA: PLANS FOR U.S. CBP PRECLEARANCE OPERATIONS AT BOG As announced by Colombian President Duque, negotiations between the U.S. and Colombian governments are underway with the objective of signing an agreement to establish U.S. CBP Preclearance operations on Colombian territory at El Dorado International Airport (BOG). IATA convened a meeting on June 21 to discuss the pros and cons of opening a U.S. CBP Preclearance facility at BOG with the participation of government representatives from the Presidency of the Republic, Ministry of Foreign Affairs, Ministry of Transportation, Civil Aviation Authority, Immigration, Customs, National Police, National Agency of Infrastructure, Civil Aviation Authority and airlines. The meeting allowed stakeholders to share perspectives and views of the conditions by which this scheme would operate. There are still concerns and a variety of items need to be addressed, such as the carriage of firearms, applicable jurisdiction, cost assumptions and location of the facility. For more details, please contact IATA’s Manager for Security and Facilitation, Alejandro Restrepo. CUBA: TAKEAWAYS OF AVIATION DAY & VALUE OF AVIATION STUDY IATA participated in the Cuba Aviation Day hosted by the Cuban Ministry of Tourism and the Cuban Aviation Corporation (CACSA). The event brought together over 100 high-ranking Cuban officials from the Ministry of Transport (MINTRANS), Cuba Civil Aviation Authority (IACC), Air Navigation Service Provider (ECNA), Cuban Corporation of Airport and Aeronautical Services (ECASA) among others. The event provided a platform to discuss IATA’s latest industry initiatives and how global best practices in the areas of distribution and technology, smarter regulation, airport and airspace infrastructure can benefit Cuba’s Aviation sector. IATA also used the opportunity to launch an economic study entitled “The Value of Air Transport in Cuba” which outlines the importance of aviation as an economic facilitator. For more details, please contact IATA’s Area Manager for the Caribbean, Annaleen Lord. For more information, please contact IATA’s Area Manager for the Caribbean, Annaleen Lord. GUATEMALA: BILL PRESENTED TO CONGRESS TO ESTABLISH TAX REGIME FOR AIRLINES A bill was presented in the Guatemalan Congress on June 5 to resolve the non-recognition of the use of the globally accepted cost allocation formulas to calculate the taxable income in Guatemala. The initiative, although presented by the Ministry of Finance with partial feedback from our members, still need further alignment with industry expectations. The bill seeks to provide legal certainty both for our members operating in Guatemala and for any operator interested in establishing themselves in the country through the recognition and adoption of the internationally accepted cost allocation formulas. IATA will continue to work with the local association to ensure that clear and fair rules are established for the industry in the country. For more information, please contact IATA’s Area Manager for Central America, David Hernandez. PERU: IATA OFFERS SUPPORT TO GOVERNMENT FOR CONSTRUCTION OF NEW CHINCHERO AIRPORT IATA issued a press release offering our support and global best practices to the Peruvian government with the construction of the new international airport in Chinchero for the Cusco region while optimizing operations at Alejandro Velasco Astete de Cusco (CUZ) during the construction period. With the right infrastructure investments, Peru has the potential to more than double its passengers over the next 20 years. But extensive work remains to be done, not only at Jorge Chávez International Airport (LIM) but also in the Cusco region as the current international airport Alejandro Velasco Astete de Cusco (CUZ) already exceeds its capacity. For details, contact IATA’s Assistant Director for Airport Development Mark Rodrigues. URUGUAY: FUEL PRICE REDUCTION OF USD11 MILLION ANCAP, Uruguay’s national oil company, officially published the new jet fuel price (JET A1) applicable for international airlines acquiring product in the country.
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